Competition Commission raids steel firms

FOUR scrap metal buying companies suspected of price-fixing have been raided by the Competition Commission in Germiston, Nigel, Vanderbijlpark, and Hammanskraal.

- MTHOBISI NOZULELA

According to the consumer watchdog, the raids form part of an ongoing investigation into suspected coordination of price increases on shredded and processed scrap metal, which could be in breach of South Africa’s competition laws.

"The Commission has reasonable grounds to suspect that Scaw South Africa (Pty) Ltd (“Scaw”), Cape Gate (Pty) Ltd (“Cape Gate”), Shaurya Steel (Pty) Ltd trading as Force Steels (“Force Steels”) and Unica Iron and Steel (Pty) Ltd (“Unica”) have engaged in fixing the purchase price of shredded or processed scrap metal," the watchdog said.